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Sunrise Realty Trust, Inc. (SUNS)

Company Dividend Discount ModelIndustry: REIT - ResidentialSector: Real Estate

Valuation Snapshot

Stable Growth$7.85 - $11.30$9.53
Multi-Stage$13.81 - $15.11$14.45
Blended Fair Value$11.99
Current Price$10.60
Upside13.10%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023
DPS0.00%0.00%0.130.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.18%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)12.37
(-) Cash Dividends Paid (M)10.99
(=) Cash Retained (M)1.37
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.471.550.93
Cash Retained (M)1.371.371.37
(-) Cash Required (M)-2.47-1.55-0.93
(=) Excess Retained (M)-1.10-0.170.44
(/) Shares Outstanding (M)11.1511.1511.15
(=) Excess Retained per Share-0.10-0.020.04
LTM Dividend per Share0.990.990.99
(+) Excess Retained per Share-0.10-0.020.04
(=) Adjusted Dividend0.890.971.03
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.85$9.53$11.30
Upside / Downside-25.97%-10.09%6.58%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)12.3712.2412.1212.0011.8811.7612.11
Payout Ratio88.91%89.13%89.34%89.56%89.78%90.00%92.50%
Projected Dividends (M)10.9910.9110.8310.7510.6710.5811.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)9.9010.0010.10
Year 2 PV (M)8.929.109.29
Year 3 PV (M)8.038.288.53
Year 4 PV (M)7.237.537.84
Year 5 PV (M)6.516.857.21
PV of Terminal Value (M)113.43119.34125.49
Equity Value (M)154.03161.11168.46
Shares Outstanding (M)11.1511.1511.15
Fair Value$13.81$14.45$15.11
Upside / Downside30.31%36.30%42.52%

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